What is a mechanic's lien?

A mechanic's lien is a security on property held by someone who has invested material or labor on the property until he is paid for the work that was done. The lien holder can have possession of the property, such as a car, until he is paid.

Though a mechanic's lien implies a hold on mechanical property, the term can be used to describe liens on other types of property, such as a home or a car. As long as the lien holder has not been paid the compensation agreed upon for the work done, he is entitled to the lien.